The U.S. Department of Agriculture's Agricultural Marketing Service issued a final rule on March 10, 2026, updating the Popcorn Promotion, Research, and Consumer Information Order. This action formalizes an assessment rate increase for popcorn processors from 5 cents to 6 cents per hundredweight, reflecting a change administratively implemented in 2001. It also adds provisions for late payment and interest charges on past due assessments. Effective April 9, 2026, these modifications support the ongoing operations of a program designed to promote U.S. popcorn through research, marketing, and consumer information. The updates address industry needs by aligning regulatory text with longstanding practices and enhancing collection mechanisms, potentially stabilizing funding for market development amid fluctuating production trends.
Background on the Popcorn Promotion Order
The Popcorn Promotion, Research, and Consumer Information Act of 1996 authorizes the Order, administered by the Popcorn Board under USDA oversight. The Board, comprising five processors handling over four million pounds of popcorn annually, finances activities to expand domestic and foreign markets. Funding comes from mandatory assessments on qualifying processors, with exemptions for those processing four million pounds or less per year and fully organic operations under the National Organic Program.
The program emerged from industry efforts to counter declining popcorn consumption in the 1990s. According to Board records, assessments support initiatives like consumer education and research into production efficiencies. In 2022, the U.S. produced over 10 million hundredweight of popcorn, primarily in states such as Indiana, Nebraska, and Illinois, as reported by the National Agricultural Statistics Service's 2022 Census of Agriculture. The Board's unanimous recommendation for these changes, made during an August 28, 2024, meeting, underscores processor consensus on the need for updated regulations to reflect operational realities.
Details of the Assessment Rate Update
The final rule amends section 1215.51(c) of the Order, changing the assessment rate from 5 cents to 6 cents per hundredweight. This adjustment codifies a rate that the Board administratively raised in 2001 and has collected from processors since then. As stated in the Federal Register notice, 'the rate was administratively increased by the Board in 2001 to 6 cents per hundredweight of popcorn and has been charged of processors ever since.'
This update eliminates potential confusion in the industry, where the outdated regulatory text could mislead stakeholders about current obligations. Assessments are remitted quarterly, with the Board reporting 2022 collections of approximately $686,339 from 18 assessed processors. The increase, though retroactively formalizing an existing practice, ensures the Order accurately represents the financial framework supporting promotion efforts. No new economic burden is imposed, as the 6-cent rate has been standard for over two decades.
Introduction of Late Payment and Interest Charges
A new subpart C, section 1215.520, prescribes penalties for delinquent payments, fulfilling authority under section 575(j) of the Act, which allows for 'regulations relating to the assessment of late payment charges.' Previously outlined in the Board's Operational Policies and Procedures but absent from the Order itself, these provisions now impose a one-time late payment charge of $250 on assessments unpaid within 30 calendar days of the due date, escalating to $500 after 90 days.
Additionally, interest accrues at 1.25 percent per month on outstanding balances, including late charges, starting 30 days after the due date. The Federal Register explains, 'This monthly interest charge was chosen by the Board to match the current language in their Operational Policies and Procedures document.' These measures, benchmarked against similar research and promotion programs, aim to encourage timely remittances without overly penalizing processors. The Board's decision followed reviews of comparable orders, ensuring fees align with programs of similar scale.
Regulatory and Economic Considerations
The rule includes analyses under several executive orders, attributed to President Trump, confirming exemptions from certain review processes. Under Executive Order 12866, the action is deemed not significant, as it amends an existing program without broad economic impact. Executive Order 13175 determined no tribal implications, with AMS planning consultations via quarterly teleconferences. Executive Order 12988 affirms no retroactive effects and preserves petition rights for challenging order provisions.
The Regulatory Flexibility Act analysis concludes minimal impact on small entities. Using Small Business Administration thresholds—$2.5 million for producers and $34 million for processors—most of the 860 U.S. popcorn farms and 33 processors qualify as small. The 2022 industry revenue, estimated at $616.6 million to $695.5 million based on parity prices and assessments, indicates average farm revenues below SBA limits. The rule imposes no new paperwork under the Paperwork Reduction Act, maintaining existing OMB-approved collections.
A 30-day comment period on the proposed rule, ending July 10, 2025, yielded one non-substantive comment, leading to no changes in the final version.
Potential Implications and Perspectives
Short-term effects include clearer compliance for processors, potentially reducing administrative disputes over the assessment rate. Long-term, stabilized funding could enhance promotion activities, aiding market expansion amid a 7.6 percent drop in harvested acres from 2017 to 2022, per NASS data.
Industry stakeholders view the changes as housekeeping measures, with Board members emphasizing alignment with practices in place since 2001. Critics, if any, might argue the late fees add complexity, though the rule's design—flat fees and interest rates matched to similar programs—mitigates this. From a policy standpoint, the updates reinforce the federal role in commodity promotion, balancing industry self-funding with oversight.
In summary, these amendments strengthen the Order's framework by updating the assessment rate and formalizing collection enforcement. Looking ahead, the Board may monitor compliance and assessment revenues, potentially adjusting strategies based on production trends. Ongoing debates could center on exemption thresholds or organic provisions, while future challenges include adapting to market shifts or regulatory reviews. Processors retain petition rights under the Act, offering avenues for modifications if needed.
